Enterprise Services Planning (ESP)
Delivery of strategic goals depends on fast coordination across your enterprise.
Combining visibility, focus, and data-driven decisions, Enterprise Services Planning
is a complete management system that takes business agility to another level.
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modules 1 & 2
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Advanced Guidance for Informed Decisions
KPI’s that Count
Every Day Risk Management
ENTERPRISE SERVICES PLANNING
This is the 2nd part of my post following Defining KPIs in Enterprise Services Planning.
Running our classroom exercises with private clients this past 18 months has shown me that most businesses have KPIs which really aren’t Fitness Criteria Metrics. In other words, their KPIs are not indicators of performance and certainly not key indicators or indicators of key performance. What I see as KPIs are really what should be classified as general health indicators and in some cases metrics driving specific improvements.
So what are general health indicators? Read more…
All KPIs should be fitness criteria metrics. All KPIs should be recognizable by your customers and addressing aspects of how they evaluate the fitness of your product or service. If your customer doesn’t recognize or care about your KPIs then they aren’t “key”, “performance” indicators, they may indicate something else but they aren’t predictors of how well your business is performing or likely to perform in future.
This blog follows my recent posts on Market Segmentation and Fitness for Purpose Score explaining how we define Fitness Criteria Metrics. These metrics enalbe us to evaluate whether our product, service or service delivery is “fit for purpose” in the eyes of a customer from a given market segment. They are effectively the Key Performance Indicators (KPIs) for each market segment. All other metrics should either be guiding an improvement initiative or indicating the general health of your business, business or product unit or service delivery capability. If you can’t place a metric in one of these categories then you don’t need it.
How do we know whether a change in our service delivery capability represents an improvement? This is the fair and reasonable question that should drive our decision making about how we manage, how we make decisions, and which changes we choose to invest in, consolidate and amplify. In evolutionary theory, a mutuation survives and thrives if it is “fitter” for its environment [this is actually a gross simplification but it will do for introductory paragraph on a related but different topic of marker segmentation.] So how do we know whether or not a change to our service delivery capability makes it fitter for its environment? What do we mean by “environment” in this context? “Environment” is the market that we deliver into. So “fitness” is determined by whether the market feels our product or service and the way we deliver it, is “fit for purpose.” So to understand “fitness” to enable and drive evolutionary improvements, we first need to understand our market and what defines “fitness for purpose.” To do this we segment the market by customer purpose and the criteria with which they evaluate our “fitness for [that] purpose.” …read more
Recently, I've taken a new approach to teaching The Kanban Method. The new Lean Kanban "Practicing the Kanban Method" class is built around the 7 Kanban Cadences - the cyclical meetings that drive evolutionary change and "fit for purpose" service delivery. Two of...read more